This year’s largest administration – the collapse of Virgin Australia – is almost over and now the cost of administrators can be revealed.
This year’s largest administration – the collapse of Virgin Australia – is almost over and now the cost of administrators can be revealed.

Deloitte scores huge payday for saving Virgin

Virgin Australia administrators Deloitte will pocket $26.8m for their work pulling the airline back from the brink of obliteration.

A four-month process to find a buyer for Australia's second-largest carrier is tipped to culminate with its sale to Bain Capital on September 4.

Deloitte, led by administrator Vaughan Strawbridge, is set to take home the multimillion-dollar cheque once Bain is handed the keys to the cockpit.

Clayton Utz and other legal costs will total $8.7m while Morgan Stanley and Houlihan Lokey will collect $16m in fees for their advisory work in the administration process.

The airline collapsed in April, owing $6.8bn to its creditors, who range from mum and dad bondholders to aircraft lessors to service providers.

This week Bain Capital reiterated its pledge customers would have their flight credits honoured in full.

Virgin is holding between $550m and $650m in customer credits.

Mr Strawbridge said Bain's plan would provide "certainty" for Virgin to continue as Australia's second airline, pay employee entitlements and cover customer credits.

The airline's 9022 employees are owed $128m in leave and redundancy entitlements.

There are about 1400 individual creditors owed an estimated $237.2m for goods and services provided to the group and 53 landlords, which are predominantly airport landlords.

Liabilities of $14.7m are owed to the Australian Taxation Office in GST, fringe benefits tax and payroll tax.

Virgin Australia's unsecured creditors are expected to receive between 13 and 9 cents per dollar of their investment.

Originally published as Deloitte scores huge payday for saving Virgin



What is the most popular car in your Queensland suburb?

Premium Content What is the most popular car in your Queensland suburb?

It’s no surprise that Gold Coast drivers love fast supercars, but new data reveals...

CAUGHT OUT: Dad busted trying to grow own drug supply

Premium Content CAUGHT OUT: Dad busted trying to grow own drug supply

The home-grown crop was far from the only drug charge landing this Southern Downs...

STREET CRED: Unique artworks reinvigorate Rose City

Premium Content STREET CRED: Unique artworks reinvigorate Rose City

The project aims to revive Warwick’s buildings and community spirit through trying...